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CUC overhaul costs: $11M
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Posted on Jun 12 2008
The cost of rehabilitating the engines at power plants in Lower Base is now reaching over $11 million, including the $6.7 million spent in 2001 and 2002.
On top of the $11 million, the Commonwealth Utilities Corp. is also obligated to pay a $5.1 million contract with current contractor, DCM Inc.
CUC executive director Antonio Muna said that, of the $6.5 million the Office of Insular Affairs recently gave the CNMI for engine rehabilitation, CUC already spent $4,709,108.
“Essentially we only have $1.2 million left of the initial $6.5 million,” Muna told the media.
Under the current rehabilitation effort, CUC was targeting seven power engines, but most of the money spent was enough for only two engines.
Muna said CUC also has a $5.1 million contract with DCM Inc. to rehabilitate seven of the eight engines at Power Plant 1. He said this is why they are asking OIA to provide them an additional $3.8 million to help defray the $5.1 million cost.
CUC reportedly paid $800,000 to another contractor, CISCO, which was tasked to rehabilitate Power Plant 2. CUC has since suspended rehabilitation work at that power plant.
In CUC’s report to visiting OIA officials last Tuesday, Muna said the cost of overhauls performed in 2001 to 2002 is testimony to the anticipated funding requirements.
“Most of the problems in the engines are known only when they are dismantled and inspected since all of the units without exception have exceeded their maintenance schedule, resulting in more damage to parts that may not be recovered under typical overhauls,” CUC said.
Parts delivery, CUC said, is seriously impacted since most of the parts are not available as ex-stock parts and have to be manufactured.
“The lead time for the delivery is known only when a contract is executed with funding available and often the process involves advance payment for them to start the manufacturing,” CUC added.
